*DLM 4000.25, Volume 4, June 16, 2015*

*Change 4*

**C7. CHAPTER 7**

**VERIFICATION OF FUNDS AVAILABILITY FOR REQUISITIONS SUBMITTED VIA INTERNET ORDERING APPLICATIONS**

C7.1.  IMPLEMENTING FUNDS AVAILABILITY VERIFICATION.  Internet ordering applications that accept Military Standard Requisitioning and Issue Procedures (MILSTRIP) requisitions dependent upon interfund billing procedures (e.g., DoD EMALL, General Services Administration (GSA) Advantage/GSA Global) must implement Defense Logistics Management Standards (DLMS) procedures for verification of Component funds availability.  Components will establish procedures to process the request for verification of funds availability and ensure subsequent establishment of a financial obligation.[footnoteRef:1] [1:  Implementation is limited to interfaces between DoD EMALL and GSA Advantage/GSA Global and the Army Funds Control Module (FCM), GCSS-Army, and the Marine Corps SABRS financial application. Additional Component interfaces are projected under future phases.  Refer to ADC 328 and ADC 1068.] 

	C7.1.1.  DoD Components may authorize manual recording of the financial obligation by the customer as a separate action until an automated interface between the ordering application and a Component-sponsored financial system is available.

	C7.1.2.  Where an interface is not available, external ordering applications must alert users to comply with their Component-directed financial procedures.

	C7.1.3.  The core function of this process is the verification of funds availability and creation of the associated financial obligation.  However, when transmitted to an enterprise resource program (ERP) the funds availability request may be used to support additional processing such as validation of authorized requisitioners or materiels and preparation of the due-in record to support receipt processing.  

C7.2.  FUNDS  AVAILABILITY REQUEST.  The Verification of Funds Availability Request will be transmitted via the DAAS gateway for synchronous, online, real-time processing in the format prescribed at Appendix 3.  Ordering application transactions will cite the DAAS URL followed by the applicable Service system communications routing identifier (COMMRI) to designate desired routing. The DAAS gateway will act as a forward proxy server between the initiating system and the destination system.[footnoteRef:2] [2:  The FCM direct interface established under ADC 328 will be retained pending transition of Army activities to GCSS-Army.  Upon full transition to GCSS-Army, the FCM interface will be terminated.] 

C7.3.  BUSINESS RULES.  Business rules for processing the Verification of Funds Availability Request are as follows[footnoteRef:3]. [3:  Implementation is limited to an interface between DoD EMALL and GSA Advantage/GSAGlobal and the Army using Army Funds Control Module (FCM) and Global Combat Support System-Army (GCSS- Army). the A Marine Corps financial application interface is pending. Additional Component interfaces are projected under future phases. Refer to ADC 328 and ADC 1068/1068A.] 

	C7.3.1.  Ordering applications will not send requisitions, requisition modifications, and requisition follow-ups to the Source of Supply (SoS) until the funds availability check is completed and positive confirmation is received.

	C7.3.2.  The Verification of Funds Availability Request will be forwarded to the ***activity identified by the bill-to DoDAAC regardless of requisitioner or ship-to activities.  Only one Verification of Funds Availability Request will be prepared per requisition.***

	C7.3.3.  The Verification of Funds Availability Request will be forwarded to the Marine Corps Standard Accounting, Budgeting and Reporting System (SABRS) when the requisition identifies a Marine Corps DoDAAC as the bill-to.  Only M-series Marine Corps DoDAACs will be eligible for the funds verification process.  The initiating system will designate SABRS by citing the COMMRI applied for this purpose.

	C7.3.4.  The ordering application will determine appropriate routing and populate the applicable COMMRI in the transaction passed to the DAAS gateway.  When communication with multiple Services (or both Army systems) is required, a separate transaction will be prepared for each.  

	C7.3.5.  The funds verification process is not applicable to free-issue requisitions.

C.7.4.  FUNDS AVAILABILITY REPLY.  The Verification of Funds Availability Reply will be transmitted via the DAAS gateway for synchronous, online real-time processing in the format prescribed at Appendix 3. The responding Service system will provide the response content to DAAS acting as the forward proxy server.  DAAS will use the existing open connection to forward the response content to the ordering application.

C7.5.  BUSINESS RULES.  Business rules for processing the Verification of Funds Availability Reply are as follows.

	C7.5.1.  The Service financial application will respond to all Verification of Availability Requests within 30 seconds of receipt.

	C7.5.2.  When the internet ordering system transmits a Verification of Funds Availability Request to two Service systems simultaneously (because the requisitioner and the bill-to are associated with different systems), the requisition will not be processed until both Service systems provide a  Verification of Funds Availability Reply.  If both contain a positive (alpha) funds verification reply code, the requisition may continue processing.  If either contains a negative (numeric) funds verification reply code, the requisition will not be released for further processing.  Display the negative code/text for the customer to clarify the reason the requisition has not been accepted.

C.7.6.  PROCESSING MULTIPLE LINE ITEMS.  When multiple line items are included in the customer’s “shopping cart,” they will be processed for funds verification as individual requisitions in succession by sequence[footnoteRef:4] described below, thereby allowing funds to be applied appropriately should there be insufficient funds for the entire “cart.”  The sequence will be: [4:  Sequencing rules are based upon those established for demand sequencing under DLMS, Volume 2, Chapter 4, C4.7.1.2.  These rules deviate from demand sequencing to include use of the RDD. ] 

	C7.6.1.  Priority Designator (PD).

	C7.6.2.  OSD/JCS project codes.  

	C7.6.3.  Special Requirements Code 999 and PD 01-03.

	C7.6.4.  Special Requirements Code N (NMCS) (PD 01-08).

	C7.6.5.  Special Requirements Code E (ANMCS) (PD 01-08).

	C7.6.6.  Special Requirements Code 555 and PD 01-08.

	C7.6.7.  Required Delivery Date.

C7.7.  VERIFICATION OF AVAILABILITY REPLY CODE.  The receiving DoD Component will verify funds availability and provide the applicable reply code.

	C7.7.1.  Under the following criteria, the requisition will be considered acceptable for further processing by the Internet ordering application and forwarding to the SoS by citing an alpha Funds Verification (FV) Reply Code.

		C7.7.1.1.  If funds are available for the bill-to DoDAAC and no error conditions exist, the requisition will be authorized for continued processing, the funds available balance decremented, and the applicable financial obligation established.  Cite FV Reply Code A.

		C7.7.1.2.  If the bill-to DoDAAC is determined under internal Component procedures as not applicable to the funds verification process (e.g., funded by an alternative funding source, which the Component is not able to verify), the requisition will be authorized for continued processing with no action.  Cite FV Reply Code B.	

		C7.7.1.3.  If the bill-to DoDAAC is not identified in the Verification of Funds Availability Request due to procedures for third-party billing (bill-to DoDAAC associated with the Fund Code/Signal Code C or L), and the funds verification cannot be accomplished, but no error condition exists, the requisition will be authorized for continued processing with no action.  Cite FV Reply Code D.

		C7.7.1.4.  If the unique message identification number (control number) assigned for the request is a duplicate of a previously processed funds availability request, but funds are available, the requisition will be authorized for continued processing.  Cite Funds Verification (FV) Reply Code E.

		C7.8.  CRITERIA FOR UNACCEPTABLE REQUISITION PROCESSING.  Under the following criteria, the requisition will not be considered acceptable for further processing by the Internet ordering application by citing a numeric Funds Verification (FV) Reply Code.

	C7.8.1.  If funds are not available for the bill-to DoDAAC, the requisition will not be authorized for further processing.  Cite FV Reply Code 1.

	C7.8.2.  If the bill-to DoDAAC is not authorized under Component procedures as a valid bill-to DoDAAC, the requisition will not be authorized for further processing.  Cite FV Reply code 2.

	C7.8.3.  If the Fund Code is not recognized and acceptable to the billed Component, the requisition will not be authorized for further processing.  Cite FV Reply Code 3.

	C7.8.4.  If the requisition document number (or document number/suffix) is a duplicate of a previously established obligation, the requisition will not be authorized for further processing.  Cite FV Reply Code 4.

	C7.8.5.  If the requisitioner DoDAAC is not authorized to order the specified materiel under Component procedures, the requisition will not be authorized for further processing.  Cite FV Reply Code 6.

	C7.8.6.  If the Service system requires prior establishment  of authorized commercial and government entity (CAGE) Code associated with part numbered materiel and the CAGE is not recognized by the Service system, the requisition will not be authorized for further processing.  Cite FV Reply Code 7.  This reject condition will be flagged for further review within the Service system to determine the source of the problem.

	C7.8.7.  If the requisitioner is attempting to modify the fund code after supply action has been initiated by the SoS and the Service system has visibility of this (e.g. shipment status has been provided), the requisition will not be authorized for further processing.  Cite FV Reply Code 8.

C7.9.  REQUISITON MODIFICATIONS.  Requisition modifications will be processed for verification of funds availability to ensure that the original requisition obligation is on file and any applicable changes to fund code or bill-to activity are acceptable.  The materiel identification on the modification must match that on the original requisition.  The responsible Component will not reject or establish a new obligation for requisition modifications due to a duplicate document number.

	C7.9.1.  Where no action is taken due to a previously recorded obligation and there are no error conditions, the requisition modification will be authorized for further processing.  Cite FV Reply Code H.

	C7.9.2.  Where the materiel identification does not match that of the previously recorded obligation matching on document number, the requisition will be rejected.  Cite FV Reply Code 5.

	C7.9.3.  If the Component has no identified obligation for the document number (or document number/suffix), process as a new requisition under the above procedures for verification of Component funds availability.  Cite the applicable FV reply code.  Note:  The funds verification process may result in rejecting modifications to requisitions that had previously processed successfully by the SoS.  Direct communication with the requisitioning Component’s financial office and possibly the SoS may be required to resolve the problem.

C7.10.  REQUISITION FOLLOW-UPS.  Requisition follow-ups in DLMS 869F, Document Identifier Code (DIC) AT_ format will be processed for verification of funds availability to ensure that the original requisition obligation is on file.  The materiel identification on the follow-up must match the original requisition.  The responsible Component will not reject or establish a new obligation for these follow-ups due to a duplicate document number.

		C7.10.1.  Where no action is taken due to previously recorded obligation and there are no error conditions, the requisition follow-up will be authorized for further processing.  Cite FV Reply Code H.

		C7.10.2.  Where the materiel identification does not match that of the previously recorded obligation (matching on document number), the requisition will be rejected.  Cite FV Reply Code 5.

		C7.10.3.  If the Component has no obligation identified for the document number (or document number/suffix), process as a new requisition under the above procedures for verification of Component funds availability.  Cite the applicable FV reply code.  Note:  The funds verification process may result in rejecting follow-ups to requisitions that had previously processed successfully by the SoS.  Direct communication with the requisitioning Component’s financial office and possibly the SoS may be required to resolve the problem.

 C7.11.  REVISION OF REQUISITION CONTENT.  Customers receiving a reply code indicating that their requisition is not authorized for further processing will be provided an opportunity to revise the requisition content.  For example, the customer may choose to reduce the extended dollar value by reducing the quantity ordered or correct the bill-to activity DoDAAC or fund code, as applicable.  Subsequent to customer update, the Request for Verification Funds Availability will be re-transmitted.

C7.12.  ALTERNATIVES FOR UNTIMELY APPLICATION INTERFACE.  When the ordering application is unable to establish a timely interface with the responsible Component application, and the customer awaits the real-time funds availability reply, the ordering application may offer two alternatives:

	C7.12.1.  Unmonitored Funds Verification.  The Verification of Funds Availability Request will be transmitted without direct feedback to the customer.  The ordering application or DAAS, as applicable, will re-send the request every 15-30 minutes for up to 3-hours while the requisition is held in a pending status.  If the reply is received indicating that the requisition is authorized for further processing, the requisition will be forwarded to the SoS with no further action.

		C7.12.1.1.  If the FV Reply Code indicates that the requisition is not approved for further processing, the Internet ordering application will retain the FV Reply Code for customer queries of  requisition status.  In addition, if the requisition is rejected using FV Reply Code 1-8, the ordering application will notify the customer directly using the customer’s contact information and the requisition will not be forwarded.

		C7.12.1.2.  If no reply is received after repeated attempts and three hours has lapsed, the requisition will not be forwarded to the SoS.

	C7.12.2.  Hold for Later Processing.  The customer may choose to place the order (“shopping cart”) in a hold status, and retry later.  The ordering application will not attempt to re-send the request.  The order will be saved for later processing to be initiated by the customer.

C7.13.  BATCH ACCEPTANCE.  Where the ordering application accepts batch ordering or input via MILSTRIP/DLMS format (e.g., multiple transactions uploaded as a batch, or without real-time direct interaction between the application and the customer, such as via DoD EMALL Manual Order Entry System (MOES)), the ordering application will process the Verification of Funds Availability Request as described in paragraph C7.12.1. above using unmonitored funds verification procedures.

C7-5	CHAPTER 7